CLAIRE BISSEKER: After Covid-19, the big debate will be austerity vs stimulus
SA urgently needs structural reform that lifts the dead weight of state-owned enterprises off the economy
The government’s response to coronavirus is going to leave SA with a huge fiscal hangover once the pandemic has run its course. What will happen then? Will the government institute austerity measures to halt runaway debt or listen to the left, which wants SA to spend its way back to health?
This debate between austerity (cutting spending to rein in borrowing and debt) and providing stimulus (spending more to boost growth) is going to rage in earnest in 2021, but the left has already shot out of the starting blocks...